Spain’s Entertainment & Media Industry Set for Continued Growth, Fueled by AI and Streaming

Spain’s entertainment and media industry is poised for sustained expansion, projected to exceed €45 billion in revenue by 2029. This growth is driven by digital advertising, streaming services, and the increasing influence of artificial intelligence (AI), according to a recent report by PwC. The sector’s performance is expected to outpace the overall Spanish economy, with a compound annual growth rate of approximately 3%.

Digital Advertising Takes the Lead

Digital advertising is identified as the most dynamic segment within the Spanish media ecosystem. The shift towards measurable and targeted digital formats is reshaping advertising capital allocation. Key trends include the rise of programmatic buying, the expansion of Connected TV (CTV), and the digitalization of out-of-home advertising.

Digital advertising revenue is forecasted to reach €6.915 billion by 2029, growing at an annual rate of 6.5%. Within this segment, CTV is expected to be a major driver, with a projected annual growth rate of 10.2%, reaching €1.950 billion. Paid search and display advertising will also contribute to this growth, while traditional television advertising and subscriptions are expected to decline, with the Spanish television market reducing its turnover to around €3.2 billion by 2029.

Streaming Services and Hybrid Models

The video streaming market, including platforms like Netflix, Prime Video, and Disney+, is expected to grow by 9.3% annually, surpassing €4.816 billion in Spain by 2029. This growth will be supported by both subscription video on demand (SVOD) and advertising-supported video on demand (AVOD) models, with AVOD experiencing a particularly strong growth rate of 18.2% annually.

The industry is evolving towards hybrid models that combine subscription and advertising revenue streams, improving operational efficiency and leveraging international scale as a competitive advantage.

The Impact of Artificial Intelligence

AI is considered a pivotal force redefining the relationship between consumers and platforms. Companies that successfully integrate AI into their content production, distribution, and monetization processes are expected to gain a significant competitive advantage. The sector is moving towards more industrialized, data-driven structures, where AI plays a central role.

Growth Across Other Media Segments

Beyond digital advertising and streaming, other segments of the Spanish entertainment and media industry are also expected to experience growth:

• Video Games: Projected to grow at an average rate of 5.2% annually, reaching a turnover of €2.753 billion by 2029.
• Esports: Expected to grow by 7.7% annually.
• Music: Projected to advance by 3.1%, driven primarily by live concerts.
• Radio and Podcasts: Anticipated to maintain positive growth with a rate of 3.5%.
• Publishing: Electronic books will sustain growth in the book sector, while magazines and newspapers will continue to decline due to the decrease in paper consumption.
• Cinema: Moderate growth is anticipated, with box office revenues reaching €532 million in 2029. Spain is also strengthening its position as a filming location for international productions.
• Digital Out-of-Home Advertising: Expected to increase by 9.7% annually.

Global Outlook

Globally, the entertainment and media industry is projected to reach $2.9 trillion in 2024, with an average growth rate of close to 3.9%, exceeding the growth of the world economy PwC Global Entertainment & Media Outlook 2025–2029.

the Spanish entertainment and media landscape is undergoing a significant transformation, driven by data, AI, and evolving consumer habits. Digital advertising and streaming are positioned as central pillars of the sector’s future growth.